That worked, but not without some effort.
I had to modify some of the config files in the software that was provided. Apparently, the software "calls home" and if you can't connect to the Oracle server it wants to talk to (you can't), you have to change the config file so it doesn't try or it gets stuck (see the post on howardforums). The loader software isn't the most user friendly, there are no options in the GUI, only in the config file.
I also had to remove the IT policy from the device and remove the password from the device because the unlock tool can't/won't wipe the password.
The technical information is spread across several forums and it took a little while to put all the pieces together. If you get the 507 error or the OS does not load, do not panic. You have to load the OS from scratch once you unlock the device.